Amdocs price target raised to $109 from $99 at Oppenheimer

Oppenheimer raised the firm’s price target on Amdocs to $109 from $99 on stronger long-term residual growth rate to 3% from cloud/AI partnerships and better margins, while keeping an Outperform rating on the shares. The firm notes Amdocs reported Q3 constant currency revenue growth +6.9%, below the firm’s 7.6% estimate, moderating from Q2’s +8.2% and 8.2%-10.8% seen last 18-months, as Europe strength more than offset by North America and Rest-of-World slowing. Oppenheimer had already factored in some weakness, so no change to FY23 and FY24 revenue and EPS estimates.